Data Led Growth project | Dhan

About Dhan:

Dhan is a relatively new online stock trading and investment platform launched in India in 2021. They are aiming to be a one-stop shop for investors, catering to both active traders who want to buy and sell stocks frequently and long-term investors looking to build wealth through stocks and mutual funds.

Services Offered:

They provide a platform for trading stocks, exchange-traded funds (ETFs), options, futures, commodities, and currencies. They also offer investment options in mutual funds and initial public offerings (IPOs).

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Long term vision:

• Dhan has ~500000 customers and majority of the customer base today belongs to the F&O and equity trading community.
• While Dhan wants to retain this customer segment, they are also looking to expand its user base, particularly among long-term investors interested in mutual funds.

Deconstructing the problem statement:

• Goal: Grow Mutual Fund investor base on Dhan to 1 Mn+ in next 12 months.
• In order to expand the mutual fund investor base on Dhan to 1 Mn+ in next 12 months- we need to focus on mainly two levers:
• • Acquisition of new customers- potentially mutual fund only customers.
  • Engagement- improve engagement for mutual fund related features in the app.

For the sake of this assignment, i will focus on designing growth experiments for point 2 i.e. to improve engagement for mutual fund related features in the app.

Experiment:

If we Improve discoverability for the Mutual Funds section by making it more prominent on the mobile app then our mutual fund registration rate will increase 20% due to increased awareness among existing users who weren't previously aware of Dhan's mutual fund offerings.

Success Metrics: ​

• • Best case scenario: The new mutual fund registration rate will increase by 20%.
  • Worst case scenario: The new mutual fund registration rate will increase by 5%.

Health metrics:

• We need to ensure that the mutual fund should not reduce the total daily volume of equity or f&o orders.

Supporting evidence:​

• User calls:
• • Existing users of Dhan: out of 50 user calls made to the existing users- 40% responded with insights like:
  • • We are not aware that Mutual Fund features are available on the app.
    • The mutual fund feature is not easy to find on the app.
• Competition analysis:
• • • Analysis of the competitor app - Groww which is also targeting a similar customer base. Therefore we also used product teardown of Groww as a reference.
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Variation design:

Current home page:

The mutual fund option is only visible across 1 scroll on the home page of the mobile app.

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Variations for testing:

• Variation A: The bottom tray to contain a mutual fund app.​
• • The current bottom navigation bar (or top navigation bar, depending on Dhan's design) will have a new tab icon and label specifically for "Mutual Funds."
  • This tab icon should be visually distinct and easily recognisable.
  • The label "Mutual Funds" should be clear and concise.
  • By having a dedicated tab, users are more likely to notice the Mutual Funds section and explore it, potentially leading to increased registration rates.

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• Variation B: Featured Clickable banner highlighting Mutual fund​
• • On the app's home page, a large banner will be placed above the existing content fold (the area visible without scrolling).
  • This banner will highlight the Mutual Funds section with attractive visuals and clear messaging (e.g., "Apne dhan ko badhao, mutual funds apnao").
  • The banner can also include a call to action button like "Start Investing"
• The prominent banner is likely to grab user attention and encourage them to explore the Mutual Funds section, potentially increasing registration rates.

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Audience and Sample Size:​

• Target Group:
• • I wish to only target long term investors and therefore let's segment the users accordingly.
  • Targeting customers who hold stocks >= Rs 10000 and are holding it for >=3 months.

Sample size

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Duration of the test:

• May 21st to June 5th till we're statistically significant; whichever is earlier.

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Implement A/A test:

• Platform we will use is Optimisely.
• To collect results we will evaluate event: 'mutual_fund_registration' from the AA test.
• The events will be synced to Segment.
• The event data will be analysed on Amplitude dashboard- 'Experiment- Discovery of Mutual Fund'
• AA test will be performed on 18th-20th May.

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Post Experiment:

• Observation:
• • Variation A performed better as compared to Variation B.
  • Variation A improved conversion by 15%.
  • Variation B has insignificant impact on mutual fund registration.

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Release Decision:

We will test more design variations for option A and run further experiments to determine the full potential.

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Learnings:

Variation A performed better because of variation B.

• One reason for that may be due to a cognitive bias known as banner fatigue where human brains and eyes ignore the banners.
• Second reason would be intent- people who are exploring the mutual fund option on the bottom tray may have a higher intent to invest in mutual funds.

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